The cost of studying abroad is seen to be skyrocketing these days, but money should never be a factor to stop you from pursuing your dreams. So today we at Raffles Educity are giving you information about the nuts and bolts for taking education loan to study abroad
- Choose your course and institution: The first step towards taking an education loan is to decide your course and institution judiciously. Enroll in a course that is really close to your heart and look at the expertise and placement strategy of the institution that you are enrolling in. While some educational institutions manage to attain a brand name, they are unable to promise lucrative placement opportunities which might make it very difficult for you to repay the education loan in the long run. Some institutions are also under scrutiny and blacklisted by various banks. So, ensure that you choose your course and institution wisely.
- Choose your bank: Now that you have selected your course and institution, the next step is to choose the bank from which you will be taking the loan. Different banks offer different education loan policies for studying overseas. Banks offer unsecured loans for small amounts and security is required for loans which are required to fund expensive courses. Check if you are allowed to pay EMIs in advance or make part payments during the repayment of the loan. So, choose your bank as per your requirement.
- Decide the duration: The duration for which you are planning to take education loan has a great impact on the EMI that you will have to pay. If you take the loan for a longer duration, the EMI will be lesser. However, if you have a well-paying job prospects, you can opt for shorter loan tenure because in that case your loan will be cheaper and will finish faster.
- Have a repayment plan: It is always good to have a repayment plan in place in order to avoid any last minute hustles. Plan your budget and expenditure strategically and cut on unnecessary expenses. As soon as you are placed, try to use the extra cash or bonuses to repay the loan before the expected deadline that will help you save a lot of interest.
- Avail tax benefits: There are various tax benefits that you can avail after taking an education loan. However, you are eligible for this deduction only if you have taken the loan from a gazetted financial institution or Indian scheduled bank. So, you can even plan the duration of taking the loan in accordance to the tax benefits that the education loan has in store.
Apart from the above-stated tips, you must be well aware about the implications, pros and cons of taking an education loan for studying overseas. Be prepared to manage your expenditure effectively and efficiently in order to convert your dream of studying abroad into a reality. All the best!
For any further information about studying abroad, get in touch with Raffles Educity – the best study abroad advisors in Chandigarh/Punjab region at +919914219000. “